Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780134128528
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter 9, Problem 9.45BE
1.
To determine
The budgeted operating expense for the 9 month period.
2.
To determine
The budgeted income statement for the 9 month period for School MRP.
3.
To determine
That, what the preschool do with its projected income for the year.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
E9-26A Budgeted income statement (Learning Objective 2)
Delta Labs performs a specialty lab test for local companies for $45 per test. For the
upcoming quarter, Delta Labs is projecting the following sales:
January
February
March
Number of lab tests
5,600
4,900
5,700
The budgeted cost of performing each test is $21. Operating expenses are projected to
be $59,000 in January, $57,000 in February, and $58,000 in March. Delta Labs is subject
to a corporate tax rate of 30%.
Requirement
Prepare a budgeted income statement for the first quarter, with a column for each month
and for the quarter.
Full of Hope Center Operations
Recent Operations
Presently, the Full of Hope Center facility accommodates a maximum of 20 children at one time, although more children enroll and attend part-time. Sometimes, especially during school vacations, daily attendance is less than 20. Hours are from 7:00 a.m. until 6:00 p.m. each weekday, with lunch and snacks provided for the children. The fee is $500 per week per child, with payment due at the beginning of each week. However, fee payments often trickle in during the week as the services are provided. Each day, three employees operate the Full of Hope Center—the salaried director, one full-time employee, and one part-time emplo
But, within a few days, Ruth noticed the cash collected did not match the number of children she observed at the Center during the week. When Ruth asked Miriam if there was additional cash that had been collected, Miriam reached into a desk drawer and handed Ruth currency that totalled $1,000. Miriam explained that…
Full of Hope Center Operations
Recent Operations
Presently, the Full of Hope Center facility accommodates a maximum of 20 children at one time, although more children enroll and attend part-time. Sometimes, especially during school vacations, daily attendance is less than 20. Hours are from 7:00 a.m. until 6:00 p.m. each weekday, with lunch and snacks provided for the children. The fee is $500 per week per child, with payment due at the beginning of each week. However, fee payments often trickle in during the week as the services are provided. Each day, three employees operate the Full of Hope Center—the salaried director, one full-time employee, and one part-time emplo
But, within a few days, Ruth noticed the cash collected did not match the number of children she observed at the Center during the week. When Ruth asked Miriam if there was additional cash that had been collected, Miriam reached into a desk drawer and handed Ruth currency that totalled $1,000. Miriam explained that…
Chapter 9 Solutions
Managerial Accounting (5th Edition)
Ch. 9 - (Learning Objective 1) Which term describes the...Ch. 9 - (Learning Objective 1) Benefits of budgeting...Ch. 9 - Prob. 3QCCh. 9 - Prob. 4QCCh. 9 - Prob. 5QCCh. 9 - Prob. 6QCCh. 9 - Prob. 7QCCh. 9 - Prob. 8QCCh. 9 - Prob. 9QCCh. 9 - Prob. 10QC
Ch. 9 - Short Exercises S9-1 Order of preparation and...Ch. 9 - Explain why companies use zero-based budgeting...Ch. 9 - Understanding key terms and definitions (Learning...Ch. 9 - Sales Budget (Learning Objective 2) Jefferson...Ch. 9 - Production budget (Learning Objective 2) Nichols...Ch. 9 - Direct materials budget (Learning Objective 2)...Ch. 9 - Prob. 9.7SECh. 9 - Prob. 9.8SECh. 9 - Prob. 9.9SECh. 9 - Prob. 9.10SECh. 9 - Prob. 9.11SECh. 9 - Cash payments budget (Learning Objective 3) Finley...Ch. 9 - Cash budget (Learning Objective 3) SaveCo...Ch. 9 - Prob. 9.14SECh. 9 - Prob. 9.15SECh. 9 - Identify ethical standards violated (Learning...Ch. 9 - Prob. 9.17AECh. 9 - Sales budget for a retail organization (Learning...Ch. 9 - Prob. 9.19AECh. 9 - Production budget (Learning Objective 2) Hoffman...Ch. 9 - Direct materials budget (Learning Objective 2)...Ch. 9 - Production and direct materials budgets (Learning...Ch. 9 - Direct labor budget (Learning Objective 2)...Ch. 9 - Manufacturing overhead budget (Learning Objective...Ch. 9 - Operating expenses budget and an income statement...Ch. 9 - Budgeted income statement (Learning Objective 2)...Ch. 9 - Prob. 9.27AECh. 9 - Cash collections budget (Learning Objective 3)...Ch. 9 - Cash payments budget (Learning Objective 3) The...Ch. 9 - Prob. 9.30AECh. 9 - Prob. 9.31AECh. 9 - Budgeted balance sheet (Learning Objective 3) Use...Ch. 9 - Prob. 9.33AECh. 9 - Prob. 9.34AECh. 9 - Cost of goods sold, inventory, and purchases...Ch. 9 - Cost of goods sold, inventory, and purchases...Ch. 9 - Prob. 9.37BECh. 9 - Prob. 9.38BECh. 9 - Prob. 9.39BECh. 9 - Prob. 9.40BECh. 9 - Direct materials budget (Learning Objective 2) Moe...Ch. 9 - Prob. 9.42BECh. 9 - Prob. 9.43BECh. 9 - Manufacturing overhead budget (Learning Objective...Ch. 9 - Prob. 9.45BECh. 9 - Prob. 9.46BECh. 9 - Prob. 9.47BECh. 9 - Prob. 9.48BECh. 9 - Prob. 9.49BECh. 9 - Combined cash budget (Learning Objective 3)...Ch. 9 - Sales and cash collections budgets (Learning...Ch. 9 - Prob. 9.52BECh. 9 - Prob. 9.53BECh. 9 - Prob. 9.54BECh. 9 - Prob. 9.55BECh. 9 - Prob. 9.56BECh. 9 - Comprehensive budgeting problem (Learning...Ch. 9 - Cash budgets under two alternatives (Learning...Ch. 9 - Comprehensive summary problem (Learning Objectives...Ch. 9 - Prob. 9.60APCh. 9 - Cash budgets (Learning Objective 3) Elis...Ch. 9 - Prob. 9.62APCh. 9 - Cost of goods sold, inventory, and purchases...Ch. 9 - Prob. 9.64APCh. 9 - Problems Group B P9-65B Comprehensive budgeting...Ch. 9 - Cash budgets under two alternatives (Learning...Ch. 9 - Comprehensive summary problem (Learning Objectives...Ch. 9 - Prob. 9.68BPCh. 9 - Cash budgets (Learning Objective 3) Ivans...Ch. 9 - Combined cash budget and a budgeted balance sheet...Ch. 9 - Prob. 9.71BPCh. 9 - Prepare comprehensive budgets for a retailer...Ch. 9 - Prob. 9.73SCCh. 9 - Discussion Questions 1. The sales budget is the...Ch. 9 - Budgeting for a Single Product In this activity,...Ch. 9 - Ethics and budgetary slack (Learning Objectives 1,...Ch. 9 - Prob. 9.77ACT
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Johnston Bookstore is the bookstore on campus for students and faculty. The bookstore E9-18A Sales budget for a retail organization (Learning Objective 2) shows the following sales projections in units by quarter for the upcoming year School Supplies Apparel Miscellaneous Quarter Books 1,570 200 580 690 1st. ..... 2nd 800 190 330 540 3rd 1,790 240 880 890 4th 670 180 540 440 The average price of an item in each of the departments is as follows: Average sales price per unit Books.. $85 School supplies Apparel.. Miscellaneous. $18 $29 $ 6 Requirement Prepare a sales budget for the upcoming year by quarter for the Johnston Bookstore, with sales categorized by the four product groupings (books, school supplies, apparel, and miscellaneous).arrow_forwardShawnTech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course. The school uses the following data in its budgeting: Fixed element per month variable element per student variable element per course revenue $0 $354 $0 faculty wages $0 $0 $2,300 course supplies $0 $48 $40 administrative expenses $41,700 $13 $21 In October, the school budgeted for 1,400 students and 127 courses. The actual activity for the month was 1,500 students and 129 courses. Prepare a report showing the school's activity variances for October. Label each variance as favorable (F) or unfavorable (U).arrow_forwardRoberds Tech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course. The school uses the following data in its budgeting: Fixed element per month Variable element per student Variable element per course Revenue $ 0 $ 298 $ 0 Faculty wages $ 0 $ 0 $ 3,100 Course supplies $ 0 $ 52 $ 40 Administrative expenses $ 26,500 $ 27 $ 52 In March, the school budgeted for 1,910 students and 88 courses. The school's income statement showing the actual results for the month appears below: Roberds Tech Income Statement For the Month Ended March 31 Actual students 1,810 Actual courses 91 Revenue $ 411,340 Expenses: Faculty wages 214,950 Course supplies 62,590 Administrative expenses 84,562 Total expense 362,102 Net operating income $ 49,238 Required: Prepare a flexible budget performance report showing both the school's activity variances and revenue and spending…arrow_forward
- Roberds Tech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course. The school uses the following data in its budgeting: Revenue Faculty wages Course supplies Administrative expenses Actual students Actual courses Revenue Expenses: Faculty wages Course supplies Administrative expenses Total expense Net operating income In March, the school budgeted for 1,720 students and 69 courses. The school's income statement showing the actual results for the month appears below: Roberds Tech Income Statement For the Month Ended March 31 Students Courses Revenue Expenses: Fixed element per month Faculty wages Course supplies Administrative expenses $0 $0 $0 $ 25,550 Total expense Net operating income Variable element per student $203 $0 $33 Required: Prepare a flexible budget performance report showing both the school's activity variances and revenue and spending variances for March. Label each variance as…arrow_forwardPlay Time is a nursery school for pre-kindergarten children. The school has determined that the following biweekly revenues and costs occur at different levels of enrollment: Number of StudentsEnrolled Total Revenue Total Costs 10 $ 4,300 $ 2,400 15 6,450 3,100 16 6,880 3,200 20 8,600 3,850 21 9,030 3,935 What is the marginal cost when the twenty-first student enrolls in the school?arrow_forwardChilton Day School allocates marketing and administrative costs to its three schools on the basis of each school's annual tuition revenue (as a percentage of the total). Last year the allocations (000s omitted) were as follows: Tuition revenue Marketing and administration Preschool $ 1,690 370 Cost allocation Preschool Middle School $ 1,990 420 In the current year, the middle and high schools experienced no change in revenues, but the preschool's tuition revenue increased to $2.09 million. Marketing and administrative costs rose to $1,440,000. High School $ 2,390 495 Required: 1. Using revenue as an allocation base, how much current year cost will be allocated to the: (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts. Similar to the given information, omit 000s from your answer.) Middle School Total $ 6,070 1,285 High School $ Total 0arrow_forward
- Chilton Day School allocates marketing and administrative costs to its three schools on the basis of each school's annual tuition revenue (as a percentage of the total). Last year the allocations (000s omitted) were as follows: Tuition revenue. Marketing and administration Preschool $ 1,630 340 Cost allocation Middle School $ 1,930 390 High School $ 2,330 465 In the current year, the middle and high schools experienced no change in revenues, but the preschool's tuition revenue increased to $2.03 million. Marketing and administrative costs rose to $1,380,000. Preschool Middle School Total $ 5,890 1,195 Required: 1. Using revenue as an allocation base, how much current year cost will be allocated to the: (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts. Similar to the given information, omit 000s from your answer.) High School Total 0arrow_forwardIn Organizational Development (OD), each area of OD has its own budget to maintain. Please create a spreadsheet indicating the following purchases for the different OD areas and the remaining balance for each department based on the beginning budget and purchases as indicated. The Center for the Advancement of Teaching and Learning Beginning Budget $60,000 Speaker Books Speaker Gifts $2,000 100 @ $22.50 each $200.00 Leadership Development Beginning Budget $40,000 Retreat Location Rental Retreat Lunch Conference Awards $8,000 $11.00 each for 72 attendees $9,000 $8,800 Creative and Strategic Initiatives Beginning Budget $25,000 Camera Software Digital subscriptions $7,000 $2,000 $550.00arrow_forwardGiven the following information, prepare an annual income statement budget for the Great Student Corporation as of 12/31/2018. 1. Sales: 1000 Units; Price $1,000 per Unit 2. Cost of Goods Sold (COGS): 60% of Sales 3. Wages: 15 Employees; Average Cost per Employee $15000 4. SGA Expenses: 12% of Sales 5. Depreciation: Straight Line $4000 per year 6. Interest Expense: 1% of Sales What was the company's budgeted gross profit? O A. $403,000 O B. $400,000 O C. $41,000 O D. $359,000arrow_forward
- ing price of $26 per case. The following information relates to the budget for Main Street a flexible budget performance report (Learning Objective 5) Main Street Muffins sells its muffins to restaurants and coffee houses for an average sell- Muffins for this year (all figures are annual totals unless otherwise noted): Performance Evaluation 629 E10-26A Prepare Budgeted sales in cases 9,100 cases Packaging cost per case. %24 Shipping expense per case Sales commission expense. 2 5% of sales price Salaries expense.. $6,500 Office rent $3,900 Depreciation. $2,500 Insurance expense... $1,800 $ 900 Office supplies expense. During the year, Main Street Muffins actually sold 9,500 cases, resulting in total sales rev- enue of $255,200. Actual expenses (in total) from this year are as follows: Packaging cost. $ 10,600 $ 19,500 $ 12,760 $ 7,300 Shipping expense.. Sales commission expense. Salaries expense... $ 3,900 $ 2,500 $ 1,600 Office rent Depreciation. Insurance expense.. $ 1,600 Office…arrow_forwardJoyful Journeys Music School provides private music lessons for elementary students. Its operating costs are as follows: Rent on facilities $2,200 per month Advertising $274 per month Instrument Rent $750 per month Teaching Instruction $40 per student Books $5 per student Other Costs $3 per student Joyful Journeys charges $100 per student per month. Determine the company’s break-even point in (1) number of students taught per month and (2) dollars.arrow_forwardThe actual and planned data for Underwater University for the Fall term were as follows: Actual Planned Enrollment 4,500 4,125 Tuition per credit hour $120 $135 Credit hours 60,450 43,200 Registration, records, and marketing costs per enrolled student $275 $275 Instructional costs per credit hour $64 $60 Depreciation on classrooms and equipment $825,600 $825,600 Registration, records, and marketing costs vary by the number of enrolled students, while instructional costs vary by the number of credit hours. Depreciation is a fixed cost. Prepare a variable costing income statement showing the contribution margin and operating income for the Fall term. Underwater University Variable Costing Income Statement For the Fall Term Revenue $ Variable costs: Registration, records, and marketing costs $ Instructional costs Total variable costs $ Contribution margin $ Depreciation on classrooms and equipment Operating income…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
Responsibility Accounting| Responsibility Centers and Segments| US CMA Part 1| US CMA course; Master Budget and Responsibility Accounting-Intro to Managerial Accounting- Su. 2013-Prof. Gershberg; Author: Mera Skill; Rutgers Accounting Web;https://www.youtube.com/watch?v=SYQ4u1BP24g;License: Standard YouTube License, CC-BY